**Ather Energy Reports Narrower Loss Amid Rising Demand**
Ather Energy, the Indian electric scooter manufacturer, announced a reduced loss for the first quarter of the fiscal year, attributing the improvement to increased demand for its products. The company anticipates a potential business impact lasting about a week in the second quarter due to China’s recent ban on rare-earth magnet exports. CEO Tarun Mehta mentioned during a post-earnings call that Ather expects a supply gap for dealers but plans to mitigate the effects using its existing inventory. The company is also considering alternatives, such as transitioning to more readily available light rare-earth magnets, which are not subject to the same restrictions.
China, which accounts for approximately 90% of the global supply of rare-earth magnets, implemented the export ban in April. Despite this challenge, major Indian automotive manufacturers like Mahindra and Hyundai India have expressed confidence in managing medium-term issues related to the ban, with Mahindra indicating a shift towards alternatives like light rare-earths and ferrites.
Ather Energy, known for its popular “Rizta” e-scooter, reported a loss of 1.78 billion rupees (approximately $20.3 million) for the quarter ending June 30, a slight decrease from a loss of 1.83 billion rupees in the same period last year. This improvement was supported by a nearly twofold increase in sales, reaching 46,078 units. The company’s revenue surged by 78.8% year-on-year to 6.45 billion rupees, although rising material costs led to a 54.4% increase in overall expenses. Ather’s adjusted gross margin improved to 23%, up from 19% a year ago, driven by non-vehicle revenue streams such as warranty programs, software, and accessories like its “Halo” helmets.
Following the release of its quarterly results, Ather’s shares experienced a significant rise, climbing as much as 19.4% to reach a record high of 414.65 rupees, ultimately closing 14% higher.
**FAQ**
**What impact will China’s rare-earth magnet export ban have on Ather Energy?**
Ather Energy expects a supply gap of about a week due to the ban but plans to manage the situation with existing inventory and is exploring alternative magnet sources.
